ben &jerry's

Keeping Things Organic at Ben and Jerry’s

Introduction • • •

Ben & Jerry’s has been making ice-cream since 1978 when grade school buddies Ben Cohen and Jerry Greenfield opened their first scoop shop in Burlington, Vermont. Primary Goal was to make and sell super-premium ice-cream. The parlour grew to a $45 million company with 150 employees in just 10yrs.

Organizational Structure Ben & Jerry’s Homemade Inc. is currently organised as an autonomous subsidiary of Unilever, which has dozens of subsidiaries worldwide. Founder: Ben Cohen and Jerry Greenfiel Board of Directors Include: • • • • • • • •

Jeff Furman Pierre Ferrari Jennifer Henderson Terry Mollner Anuradha Mittal Kees Van der Graaf Bama Athreya Helen Jones

Ben and Jerry’s Early Structure: Organic Structure: • •

Flexible task Definition Decentralized or diverse control

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Lateral or Horizontal communication Low formalization (less rules & regulations)

Ben and Jerry’s Today’s structure Mechanistic structure: • • • • • •

Low flexibility Departmentalization Rigid task allocation Centralization control One way (vertical) communication High Formulization (strict rules and regulations)

Factors Involved in change • • • • •

Survival of the company Existence of new competitors in the market High demand for ice-creams which lead to high production. Growth rate slowed to 40% in 1987-1988. Company had to retain its position on the super market shelves.

SWOT Analysis Strengths •

Prestigious, established, successful, global operation, with sales in USA, Europe and Asia, which is synonymous with social responsibility and environmentalism. For example, its products are packed in unbleached cardboard containers.

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Ben & Jerry's also donate a minimum of $1.1 million of pre-tax profits to philanthropic causes yearly. The company sponsors PartnerShops, which are Ben & Jerry outlets independently owned and operated by non-profit organizations such as Goodwill Industries. The company is also involved in other good causes, including global warming, gun control and saving family farms.

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The company sells its colourfully named ice cream, ice-cream novelties, and frozen yogurt under brand names such as Chunky Monkey, Phish Food, and Cherry Garcia. It also franchises some 750 Ben & Jerry's Scoop Shops worldwide.

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Ben and Jerry's were bought by consumer products manufacturer Unilever in 2000, but were still able to retain their social responsibility platform and kept both co-founders closely

involved with product development. Their brands complement Unilever's existing ice cream brands. •

In 2008, their market share was second only Haagen-Dazs who had a 44% market share while Ben and Jerry's had 36%. This was achieved in spite of a premium price point. The premium price of the product was supported by a high quality image, and high quality products.

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Marketing through social activity-low marketing costs.

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Employee involvement /strong team culture.

Weakness •

Their clear focus on multiple social responsibility issues could hurt the company by shifting the focus away from important business matters, and also add unnecessary costs.

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They need more experienced management to fuel aggressive growth in a downturned economy and change flat sales in their premium product lines.

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Lack of professionalism in its management.

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High Pricing

Opportunities •

In today's health conscious societies the introduction of more fat-free and healthy alternative ice cream and frozen yogurt products.

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Provide allergen free food items, such as gluten free and peanut free.

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In 2009 Ben & Jerry's announced plans to roll out the country's first HFC-free freezers; freezers that would be sold to grocery stores and would not emit harmful chemicals into the atmosphere. In 2008 they acquired Best foods and Slim-fast which will allow them to enter a new industry of weight loss products. In turn they can now expand into new geographic markets-more countries, like Europe, where the weight loss/management trend is taking hold.

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They could expand their existing product lines to compete with the 'private-in house brands' offered by supermarkets, and in developing countries.

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Selling Ben and Jerry's premium ice cream in South America (which is an emerging market that has yet to be capitalized upon). There is a growing demand for premium ice cream in new markets like Asia.

Threats •

Any contamination of the food supply.

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Rising prices of milk and other products used for Ben & Jerry’s ice cream.

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Shifts in demand

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Rising health consciousness; Consumers are concerned about fattening dessert products. Especially Ben and Jerry's target market, which are accustomed to reading nutrition labels.

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Weakening Economy

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Increased Competition

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